MCX Gold April Future consolidating around lower levels

Fundamental & Technical Outlook on Commodities

Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited

Gold prices moved down further as US showed some sign of improvement by showing lower Unemployment claims and revised GDP numbers. Data on last week showed the U.S. economy grew a bit faster than previously estimated in the fourth quarter and new claims for jobless aid dropped to a near four-month low last week. Ukraine won a $27-billion international financial lifeline, after Russia's annexation of Crimea, while Moscow's economy minister acknowledged that his country's growth would slow dramatically as funds flee abroad. Physical demand from Asian countries like China and India has also been down. Gold prices are expected to move down further after positive US numbers and lack of demand in international and domestic market.

Over all, MCX Gold April future is in consolidation and sustaining around lower levels. For the coming week 27700/27340 will act as a major support whereas 28720/29100 will act as a major resistance level in MCX Gold April future. For the next week in MCX Gold, trader can use sell on higher level strategy, if MCX Gold April future sustain below the levels of 28070 then it could test the levels 27970/27700.

Technically, MCX Silver May futures is in consolidation and sustaining around lower levels. For the coming week 43500/44800 will act as major resistance levels where as 40000/38536 will act as major support in MCX Silver May futures. For the next week in MCX Silver futures, traders can use sell on higher level strategy, if MCX Silver May futures sustains below 42400 then it could test the levels of 41500/ 40000.

Source : Equity Bulls

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